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Friday, December 31, 2010

BAE Job Cuts 'Will Wipe Out British Skills'

BAE Systems (LSE: BA.L - news) has confirmed it intends to cut almost 1,400 jobs following the Government's defence review, which axed the Harrier and Nimrod aircraft.

A consultation has begun with staff and unions at six of the firm's sites and two RAF bases, in a move that has sparked warnings of a future UK skills shortage.

BAE Systems' managing director of Military Air Solutions, Kevin Taylor, said the cutbacks were designed to ensure the firm remained competitive.

"I appreciate this is difficult news for our people and we are committed to working with employees and their representatives to explore ways of mitigating the potential job losses," he said.

BAE's announcement drew scathing criticism from unions.

Unite's Bernie Hamilton said the job losses were "a tragedy for the workforce and for Britain".

"The coalition Government's Christmas present to over a thousand skilled workers who support Britain's armed forces is the sack," he said.

"Legendary planes like the Lancaster used in World War Two by the dambusters will never be built in the UK again.

"The country that gave the world the revolutionary Harrier jump jet will lose the know-how to build an aircraft like this."

Keith Hazelwood of the GMB said the announcement was a "devastating blow for UK manufacturing and the local communities".

"GMB will be seeking detailed meetings with BAE Systems to see exactly where the axe is falling and what steps if any can be taken to mitigate these job losses," he said.

BAE said the cutbacks at Chadderton, Prestwick, Yeovil and RAF Kinloss were associated with the cancellation of the Nimrod MRA4 programme.

At Farnborough and RAF Cottesmore the potential job losses are down to the Harrier fleet's early withdrawal from service, the firm said, while the Samlesbury and Warton sites are affected by both the Nimrod and Harrier decisions.

In addition, BAE Systems said its Saudi Arabia divison had begun consultations with employee representatives on 90 potential job losses in its UK business, predominantly at Samlesbury.

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